ERHC Energy Inc, a publicly traded American company with oil and gas assets in West Africa, has announced further details regarding its Chadian exploration program. In July, ERHC signed a production-sharing contract (PSC) on three oil blocks in the Republic of Chad, covering a 100 percent interest in BDS 2008 and the Manga block, and a 50 percent interest in Chari-Ouest 3.
ERHC's Chad exploration program will cover an eight-year period and includes a two-well commitment. The exploration program is divided into three phases with the initial phase devoted primarily to geological and geophysical (G&G) studies. The G&G work will take the exploratory process from the generation and gathering of all requisite technical data to the interpretation and analysis that will inform specific drilling locations. As is usual with PSCs, ERHC and the Chadian authorities will agree on a specific work program and corresponding budget annually.
"Upon finishing the synthesis of initial technical data received from the Chadian authorities and putting in place requisite management structures and arrangements, we will begin the important work of talking to service companies toward the first steps of the G&G work," said Peter Ntephe, ERHC's President/CEO. "This will be done in tandem with discussions regarding potential operating and consortium partners."
ERHC also addressed its equity stake in Exile Resources, the Canadian junior. ERHC holds 7.35% of Exile whose assets include a carried interest in Nigeria's Akepo field. Exile is currently in reverse takeover talks with Oando Plc, the Johannesburg and Lagos listed integrated energy group. ERHC stated that together with its advisers, it will monitor the proposed Oando-Exile transaction closely in the coming weeks with a view to acting as appropriate to enhance value for ERHC's shareholders.
ERHC further notified its shareholders it was exploring opportunities on producing and near producing assets in Nigeria. The company has entered into "positive" talks with the Imo State government of Nigeria to work with the government to bring marginal fields in the State to production. Imo State is one of Nigeria's oil producing states and one of the earliest places where oil operations were established in Nigeria.
